Macro Test 1 Part 2

The Industrial Revolution

A period marking the transition from agrarian economies to industrialized ones characterized by large-scale factories. 18th century

Adam Smith’s “Invisible Hand”

The theory that individuals seeking personal gain inadvertently contribute to the overall economic good of society.

Marxian Theory

The theory that points to the exploitation of labor by capitalists in a capitalist economy. Mid 19 Late 20 century

Soviet Union

The former communist state that controlled a significant portion of the world population during the 20th century.

Central Planning

An economic system where the government determines what, how, and for whom goods are produced.

The Great Depression

A severe worldwide economic downturn that began with the stock market crash in 1929.

Keynesian Economic Theory

An economic theory stating that active government intervention is necessary to ensure economic stability. 1920s

Technological Progress

Advancements in technology leading to improved methods of transportation and communication. 20th century

Globalization of Economy

The increasing interconnectedness of world economies through trade, communication, and technology. modern

Reduced Trade Barriers

The removal of restrictions on international trade to facilitate easier exchange of goods and services.